Imagine a tool, a financial compass of sorts. It's a calculator designed to help you forecast the wealth required to comfortably meet your monthly expenses in the years to come. Think of your money as being safely tucked away in the S&P 500 index fund. Each month, you withdraw only what you need, letting the rest flourish at market rates.
This isn't just a tool for budgeting. It's a forward-thinking device, designed to estimate the funds necessary to navigate through the seas of future expenses. A handy way to chart your financial voyage. Ready to set sail?
Provide how much money you need to spend monthly on the first year you start FIRE.
This is the amount you would get after all taxes paid. We will adjust this based on future years inflation. Annual Spending increase (Inflation):
This is the expected average inflation rate, You can check historical US inflation rate in the following places:
Current Cash you can invest
The amount that you currently have and you can put them as investment.
It is recommended to put all your money in an investment account in an index fund like S&P 500 with low cost.
Assuming you put all your money in an index fund like S&P 500 what is your annual expected return rate.
The average annualized return of S&P 500 since its inception in 1928 through Dec. 31, 2022, is 9.82%.
The average annualized return of S&P 500 since adopting 500 stocks into the index in 1957 through Dec. 31, 2022, is 10.15%.
Age you get want to get FIRE (From this age you will solely depends on income from your investments)
How many years do you need the money before you can start using other sources?
Retirement tax rate (Over Age 59 1/2) 401K distribution will be taxed at this rate. Social Security distribution will be taxed at this rate Long Term Capital Gain Tax:
The tax you will be selling on the stocks you are going to sell.
Enable 401K investments
Enable social security benefits Starting Age
What age you want to start receiving benefits (minimum 62) You check your monthly expected benefits payment at portal Adjust the amount based on future dollar (Apply Inflation) What you see in social security portal is not adjusted based on future inflation. We can use the same inflation you provided earlier to adjust this income. Other option is to and get the future dollar value.
You need to add $to your initial investment
Market return rate: %
Capital Gain Tax Rate: %
Retirement Tax Rate: %
Get FIRE at age (for years) until you are years old.
Age: 67 Amount: $3800 (Adj Inflation)